Marketing Plan.edited (2)

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Marketing Plan Sally Beauty-Marketing Plan Katie Butler September 19, 2023 1

The Executive Summary Sally Beauty has been a leader in the beauty retail industry for almost 60 years. Sally Beauty is determined to bring the best products to the market. This is why Sally Beauty is pleased to introduce an extension to Bondbar. This product will be a dry shampoo with many different benefits unlike any other on the market. It will be called Bonding Renewal Spray. Sally Beauty will be able to continue to keep costs down and profits high by selling their brands in-store and online. They will reach the market of do-it-yourself consumers by using digital marketing as their primary strategy. Digital marketing for the company will look like social media posts, micro-influencers, and email marketing sent often. The company will use digital marketing as one of their marketing tactics also. They will rely on email marketing and consumer reviews for promotions. Sally Beauty has chosen a competitive pricing strategy by keeping the price lower than some dry shampoos but still higher than the cheapest. Indirect distribution will be how customers receive the new products. This means the products are not sent directly to the customer from the manufacturer. However, the products are sent from the manufacturer to a middleman, often the warehouses of a company, then to the customer. If bought online, it will travel from the manufacturer to the warehouses, stores, or customers' homes. The main goals of this product launch are to increase revenue by 20% and salesforce by 15% by quarter 2. By meeting these goals, customer satisfaction will also be on the rise. The company will closely monitor key performance indicators like sales and conversion to see how the product trends. They will also watch web traffic to see how many consumers click on the email marketing or website to buy the product. Following the strategies and tactics and keeping a close watch on key performance indicators, this new product should launch successfully. Business Context Sally Beauty is a beauty supply company owned by Sally Beauty Holdings. Sally Beauty has been in business since 1964, when one man started a one-store operation in Louisiana. Currently, the company has more than 1,200 stores in the United States, with more than 3,000 stores internationally. Sally Beauty sells to consumers and beauty professionals alike. The products range from hair color to hair care to salon supplies. 2

Sally Beauty is extending an already well-established product line. Bondbar is a reparative hair care line that repairs hair and adds moisture from the inside out. Bondbar is excited to add the Bonding Renewal Spray to the lineup. The Bondbar Bonding Renewal Spray is a dry shampoo like no other. The purpose of dry shampoo is to allow the user to skip wash day by using starch to dry up any oils in the hair. This enables the customer to have a great hair day on more than just the first day they washed their hair, or it could be used after the gym to soak up post-workout oils. The key benefits of Bonding Renewal Spray are as follows:  Leaves hair clean with no oily feeling  No white residue left after use  Promotes hair growth due to being infused with biotin Sally Beauty successfully launched the Bondbar line in October of 2022. It quickly became highly sought after and sold out in-store and online after going viral on social media. Because of this, it is essential to create goals for this new product. The first goal for Sally Beauty with this new product extension is to increase revenue. This goal will succeed by increasing customer loyalty within stores and through e-commerce. The company aims to reach a new market that might not shop at Sally Beauty. With these goals, this launch will allow Sally Beauty to remain a leading competitor in all things beauty for a long time. Situation Analysis Sally Beauty must compete with many companies within the beauty industry. Ulta Beauty and the many local beauty supply stores nationwide are among the competitors. By having this competition, they must have an advantage to stay on top. Sally Beauty does this by having brands that they own. Sally Beauty owns more than 20 brands. This has allowed the cost of creating and manufacturing the products to stay low and the prices of the products to stay competitive. Bondbar is a Sally's brand, and they can compete amongst the greats by having this brand. Bondbar’s Bonding Renewal Spray will be the perfect addition to a famous line. Due to the clean ingredients and proven results, the Bonding Renewal Spray could be the top dry shampoo at Sally Beauty. Strengths: Weaknesses: 3

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 Offering Own Brand Products  Sally Beauty Rewards  Own Brand Manufacturing  Viral Media Trends Opportunities:  Buy Online Pick Up In Store  Associate Influencer Program Threats:  Increased Labor Costs  Increased Material/Product Costs Strengths: The company supplies products that cannot be found elsewhere due to their brands. Because Bondbar, and other Sally brands like it, can only be bought at Sally Beauty, customers often find the store a one-stop shop for all hair color and hair care products. This shows the promise of excellent customer loyalty and retention. Sally Beauty’s reward program helps support good customer relationships by giving the ability to earn money-off rewards with every purchase. Customer information in the rewards system allows the company to send marketing emails and promotions to maximize customer loyalty. The company continues to update its rewards program to enhance customer experiences. Another strength that sets Sally Beauty apart is their customer service. Each associate is trained in hair care and hair color. This allows each customer interaction to be tailored to their needs, whether changing their hair color or needing a new shampoo to tackle a specific problem. Weaknesses: Due to Sally Beauty creating and manufacturing their products, it can take time to maintain enough stock in all stores and warehouses for online purchases. In the current social media environment causing products to go viral, retailers already need help keeping items in stock, so being the sole manufacturer of their brand products makes it more challenging to keep them in stock. When customers enter a store wanting a specific item not in stock, they generally want to avoid trying something new. If the company has a stock issue on this new product or any product in general, it could lose customers who might not return once it is in stock. It is important to remember that when ordering the product from the manufacturer. Opportunities: Customers like being able to shop online nowadays, so being able to shop online and pick up in-store is something that Sally Beauty has partnered with DoorDash to achieve. Sally Beauty can also gain an advantage in certain areas by partnering with brands to offer exclusivity in Sally Beauty stores and being the only place that sells the products. This will get customers into a Sally store instead of shopping with a competitor. Another opportunity would be an influencer program with associates on social media. Reviews online, no matter the platform, can make or break a brand or product. Utilizing and paying associates who already review products for fun on their TikTok or Instagram would be a terrific way to get the word out about a great new product like the BondBar Bonding Renewal Spray. 4

Threats: Increasing labor costs could affect businesses in many ways. Sally Beauty employs more than 29,000 associates. The company has had to figure out ways to keep turnover low and associates happy while working at Sally Beauty. At the beginning of FY 2023, Sally increased the starting pay for all associates by $3. This has helped associates from looking for other places of employment. Increasing material and product costs have hit every business in the United States. This causes a decrease in profit, so eventually, companies will have to increase the cost of the product in-store. Unfortunately, due to this inflation, customers must think harder about where their dollars go. This is why Sally Beauty should utilize any opportunities given. Marketing Strategy With so many beauty supply stores and hair care brands in the industry right now, companies can face many obstacles trying to be successful. There are many different strategies Sally Beauty can choose to successfully market a new product launch, like Bondbar’s Bonding Renewal Spray and other products in the Bondbar line. The first strategy Sally Beauty should use is digital marketing. Digital marketing is a great way to get the word out about products. Digital marketing can come in many different forms. One form could be owned media, including any creations Sally Beauty can create for this product. Owned media might look like a post on Instagram or a YouTube video that shows how to use the product effectively. Another form of digital marketing is earned media. Earned media is any coverage for the product that Sally Beauty did not pay for, such as a mention in top hair care videos. The last form of digital marketing is paid media. Paid media looks like partnerships with influencers or paid ads on different platforms. The first way to use a digital marketing strategy is to use social media, whether earned or paid. There are many different platforms that Sally Beauty can use, but the best would be to start with TikTok. TikTok has become a massive platform for product reviews. TikTok also allows consumers to search for a specific topic they might be interested in, or often, it will pop up while scrolling through the app. Instagram is another platform that consumers flock to. Many influencers use Instagram to review new products using the app's Reels feature. Because consumers love watching others review products, influencers cause consumers to flock to these social media platforms. Using either of these platforms for this product will allow a larger audience to be reached and more of the product sold. Another great strategy is to give free samples to the associates. A free sample of the new Bondbar Bonding Renewal Spray will allow them to all try it and gain an honest opinion of the product. It makes it easier to sell a product when the associates have tried and liked it. This can generate more movement of the product. Generally, once customers try and like a product, they continue to use it. This strategy strengthens customer loyalty. 5

Sally Beauty's target audience is the do-it-yourselfer who wants to achieve salon-quality styles at home. Sally Beauty is perfect because the products are always affordable, and the quality and customer service are unmatched by any other beauty supply store. This is why the Bondbar Bonding Renewal Spray will be the next big thing for Sally Beauty. From the quality ingredients that allow for a great hair day to the affordable price of just $12.99, this new product will benefit more than just the average consumer. Sally Beauty’s positioning will always be professional quality products at home. Marketing Tactics Marketing tactics can be used to maximize sales while promoting a product. Sally Beauty will use four marketing tactics to achieve the corporate objectives. A promotional strategy is a plan to create or increase demand for a product. Sally Beauty will rely on email offers, customer reviews, and content marketing to promote the Bonding Renewal Spray. The pricing strategy is correctly pricing an item and being competitive in how it is done. Sally Beauty will use a competitive pricing strategy. Bondbar's Bonding Renewal Spray costs $12.99, which is very competitive with items from other brands. Usually, dry shampoos cost $15 and up, so with the price chosen, it will stay competitive in the industry. Distribution strategy is the method used to bring the product to the consumers. Sally Beauty will be using an indirect method for this. The indirect method means the product does not go straight from the manufacturer to the consumer. Sally Beauty has warehouses periodically throughout the United States, for example. Hence, the products come from the manufacturer to the warehouses; they will either go to stores to sell or to the customer's house once ordered online. Lastly, the advertising strategy aims to reach the target audience and convince them to buy the product. Sally Beauty will use a mix of content advertising and informative advertising. Content advertising will aim to influence consumers directly through social media. Informative advertising will aim to show the value and benefit of Bonding Renewal Spray by using comparative ads in email marketing and social media ads. Effectiveness Here are controls that will aid with the effectiveness of this new product and aid in the company's goals.  Increase revenue by 20% by Quarter 2  Increase salesforce by 15% by Quarter 2  Customer satisfaction will continue to rise 6

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The effectiveness of this plan will be measured in many ways to aid in the goals listed above. Key performance indicators like sales and conversion are a terrific way to keep track of this. Sales will come from two different sources. Those are retail stores and e-commerce sales. Conversion is a store formula that sees how many customers enter a retail store to purchase something; a looker is converted into a customer. Another way to measure the effectiveness will be web traffic. Web traffic can come from text message marketing or emails, to name a few different avenues. Web traffic is often measured by reach, frequency, and impact. The reach would be if Sally Beauty expanded the customer base and generated more interest in the product. The frequency could be how many times the ad is accessed. The impact would be how many more sales the new product is causing the website to get. Summary New products are the best way to keep companies relevant and competitive. All beauty industry companies are trying to compete to be on top and provide the customers with the best products. Bondbar’s new Bonding Renewal Spray will be the perfect product for Sally Beauty’s next product launch. The key benefits of the Bonding Renewal Spray are that it leaves the hair extremely clean with no white residue and promotes hair growth due to it being infused with biotin. A new product like this will bring in new customers and increase customer loyalty. That, on its own, will increase sales revenue and keep Sally Beauty relevant. By keeping in mind Sally Beauty's strengths, such as keeping the margins low due to owning their brands, they will remain competitive. Utilizing opportunities such as associate micro-influencers, they can get very cost-effective advertising. Having micro-influencers will also help with labor turnover because the associates will feel like they are a part of something bigger. Using a rewards system to keep customers loyal should have positive results in key performance indicators like sales and conversion. The company will use marketing strategies such as digital marketing to reach new customers. Using social media will allow many products to go viral, which will cause them to sell out. The company will also give out free samples to the associates to allow them to sell the product better since they will know how well it works. By being innovative with its marketing 7

strategies, Sally Beauty will become known as the store, allowing for professional quality home products. The company will use marketing tactics to lead the brand toward marketing goals. The tactics mentioned will be competitive content marketing, competitive pricing, indirect distribution, and two different types of advertising. These goals will direct the company to increase revenue and the sales force by quarter 2. Accomplishing these goals will allow the company to continue creating products that keep the customers coming for a long time. Ensuring the customer is happy and satisfied with the product will ensure success for Sally Beauty. 8

References Cote, C. (2022, March 24). PRODUCT INNOVATION: WHAT BUSINESS LEADERS NEED TO KNOW . Harvard Business School Oline. Retrieved September 19, 2023, from https://online.hbs.edu/blog/post/product-innovation#:~:text=An%20innovative%20product %20can%20cut,stay%20relevant%20and%20drive%20growth . (2023, March 10). 10 Marketing Plan Objectives To Consider and the KPIs To Measure Them . Indeed. Retrieved September 24, 2023, from https://www.indeed.com/career-advice/career- development/marketing-planning-objectives (2023, June 19). E.L.F. Beauty CEO: Our products are flying off the shelves at Walmart, Target, and Ulta . Yahoo Finance. Retrieved September 24, 2023, from https://finance.yahoo.com/news/elf-beauty-ceo-our-products-are-flying-off-the-shelves-at- walmart-target-and-ulta-132315550.html Sally Beauty Holdings Inc. SWOT Analysis. (2022). Sally Beauty Holdings, Inc. SWOT Analysis , 1–8. (2023, September 11). What Is a Digital Marketing Strategy? The Ultimate Guide (2023) . Shopify. Retrieved September 28, 2023, from https://www.shopify.com/blog/digital-marketing- strategy 9

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Marketing Plan.edited (2)

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